GREY:SUGYF - Post by User
Comment by
neofiteinvon Jul 03, 2013 7:43pm
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Post# 21587920
RE:oil discovery updated (20 cent stock)
RE:oil discovery updated (20 cent stock)Iamwcw: thanks for your post- it was helpful. Can you explain why the potential is "astounding" at Hatton. The 1 million barrels seems reasonable based on existing production plus 7x 100k per horizontal well from the company's presentation at $50/ barrel (also reasonable based on current WTI and company presentation). As SHR has an NPV of $1.79 m for the wells, which would be $12.5 million in aggregate, which is great, but seems low compared to existing potential at Redwater based on the company's existing estimtes and reserves for that area. Are you assuming that there will be 3 or 4 of these development opportunities at Hatton, so we are looking at $50 million potential value instead of $12,5 million? Also, where was one of the best oil wells that was lost and not coming back? Finally, do you have any sense of what Redwater would be worth in the current market- it was a while back and values may have changed but Westfire paid a lot of money for Redwater assets.